Maverix is expected to add high quality gold royalties based in the Americas, with the acquisition
Canadian gold royalty and streaming company Maverix Metals has agreed to acquire a portfolio of 11 gold royalties from Newmont, a US-based gold mining company, for about $90m.
Under the definitive agreement signed by both the companies, Maverix will issue 12 million common shares to Newmont and pay $15m in cash after completion of the deal.
In addition, the company will make $15m in contingent cash payments if the production milestones at some underlying assets are achieved within five years of closing the acquisition.
The portfolio of royalty assets are located in Mexico, USA, Canada and Guatemala, ranging from in construction to exploration stage.
The portfolio of projects include Camino Rojo and Cerro Blanco gold and silver projects
The assets include Camino Rojo, Ana Paula, Cristina and Yecora in Mexico, Algoma-Talisman and Sprogge in Canada.
They also include Cerro Blanco in Guatemala, Mother Lode, Imperial, Trenton Canyon and Buffalo Valley in US.
Maverix Metals said that the production at the Camino Rojo project, which is operated by Orla Mining, is estimated to start in 2021.
The land package of the project comprises seven mineral concessions spanning over 206,000ha of land.
Maverix CEO Dan O’Flaherty said: “This transaction marks another important milestone in our continued growth at Maverix.
“The acquisition of these high quality royalties enhances our existing portfolio and adds to our already robust pipeline of development assets.
“We want to thank Newmont for continuing to entrust the Maverix team with unlocking additional value from their royalty assets.”
Additionally, early works at the Cerro Blanco gold and silver project that is operated by Bluestone Resources, is expected to begin by the first quarter of the same year.
In April last year, Maverix Metals has entered into a life of mine purchase and sale agreement for silver produced from the El Mochito Mine, which is owned and operated by Ascendant Resources.